Philippine Inflation Likely Eased Slightly in August: Economists

Economists polled by The STAR predict that inflation in the Philippines may have eased slightly in August, but still remains above the target range set by the Bangko Sentral ng Pilipinas (BSP). The median forecast is 6.1 percent, down from 6.2 percent in July, but still well above the BSP's two to four percent target range.

Forecasts ranged from 5.9 percent to 6.3 percent, with some economists citing higher food and fuel prices, weather-related supply disruptions, and the peso's weakness as contributing factors to elevated price pressures.

China Bank chief economist Domini Velasquez expects headline inflation to hold steady at 6.2 percent in August, unchanged from July, while core inflation may have eased to four percent from 4.2 percent in July.

Velasquez notes that upside risks remain significant, particularly from elevated oil prices and a prolonged El Niño episode that could disrupt agricultural output.